Everything else held constant, when stock prices become ________ volatile, the demand curve for bonds shifts to the ________ and the interest rate ________
A) more; right; rises
B) more; right; falls
C) less; left; falls
D) less; left; does not change
B
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Refer to the figure above. Which of the following is true?
A) Firm 2 should follow Strategy X if Firm 1 follows Strategy X. B) Firm 2 should follow Strategy Y if Firm 1 follows Strategy Y. C) Firm 2 should follow Strategy X if Firm 1 follows Strategy Y. D) Firm 1 should always follow Strategy X.
If the real interest rate is below the equilibrium real interest rate
A) lenders will be unable to find borrowers willing to borrow all of the available funds and the real interest rate will fall. B) borrowers will be unable to borrow all of the funds they want to borrow and the real interest rate will rise. C) lenders will be unable to find borrowers willing to borrow all of the available funds and the real interest rate will rise. D) borrowers will be unable to borrow all of the funds they want to borrow and the real interest rate will fall.
An individual who drives a car without a muffler in an attempt to increase fuel economy is creating
a. a positive externality b. a public good c. a negative externality d. a winner's curse e. vertical inequity
Which of the following is considered to be the best method of production?
a. Capital-intensive method b. Least-cost method c. Labor-intensive method d. Scarce resource method